Bay Area Continues to Grow Its Share of VC Financings
October 02, 2013
The San Francisco Bay Area increased its share of VC financings and capital invested in the third quarter, data released today by PitchBook show. San Francisco and Silicon Valley combined to attract $3.1 billion across 275 venture rounds in the third quarter, good enough to make up 32% of the 854 U.S.-based third-quarter venture rounds and 43% of the $7.32 billion in funding, according to the preliminary regional data. These are both slight increases over the second quarter, when the Bay Area comprised 30% of VC deals and 42% of capital.
New York City came in second among cities with startups receiving VC financings to comprise 11.1% of VC deals in 3Q 2013. Los Angeles, Boston and Seattle rounded out the top five with 5.5%, 4.8% and 3.6%, respectively.
The median pre-money valuation for Bay Area VC-backed companies has also risen from previous quarters. After hitting $20.2 million in 2Q 2012, valuations dropped to $15.9 million in the first quarter of this year, but rebounded to $21.6 million and $22.6 million in 2Q and 3Q 2013, respectively.